This invention applies to buying and selling stocks, options, commodities, bonds, and most forms of equities and securities. This invention has useful application for the individual investor, the securities broker and others who trade securities.
One of the strategies for buying and selling stock is to buy stock at one price forming a ‘long’ position then selling the stock at another price, closing out that position. Other strategies include forming a ‘short’ position by borrowing stocks then closing out the position by buying back the securities at another price.
On-line securities trading allow the common investor the ability to buy and sell stocks and securities over the Internet at minimal transaction costs. Numerous electronic trading companies have been established and tens of thousands of individual traders have made tens of millions of securities transactions every week. Many individual traders continue to dedicate hours to buying and selling securities in hopes of benefiting on minor stock price moves. Many must take time out of their regular busy day to watch the market and trade stock. This extra time required detracts from a person's regular job and also leads to less-than-optimal stock trading results.
The current Internet investment approach requires investors to access their accounts to submit a buy order, then re-access their accounts to receive a list of the daily transactions. If an investor submits a limit order, the stock price must reach the limit order price before the transaction takes place; often the order is not filled the same day. If the investor submits a market order, the transaction occurs quickly, but the investor must wait to find out the cost of the transaction that was determined by the market.
In either case, the investor must submit an order, wait for the transaction to occur then develop and submit a second order to close out the position in hopes of making a profit. This current state of the art process is time consuming and may require investors to check their accounts several times a day. The result is loss of time or interference with the investors' regular job, and in a fast-moving market, investors may miss the opportunity to close out their position.
To take advantage of market volatility, investors must continually monitor the market. First they need to decide when to buy, then, once the buy transaction has occurred, they must immediately submit a second order, usually a limit order, to take a sell position and close out the position at a predetermined price.
Of course investors can still use traditional stockbrokers to execute a buy-sell or sell-buy strategy. However using a broker adds to higher transaction cost and the broker must also watch the stock and execute two sequenced orders.
My invention will replace the current methods and processes, allowing investors to lower transaction costs. With my invention, investors can place one order that will buy the security at a preset price and sell the security at a gain price, without requiring additional investor actions.